RECOVERY OF ABIA HOTELS: A STEP IN THE RIGHT DIRECTION
By Emeka Nwosu, PhD.
A few days ago, the Abia State Government announced that it has revoked the certificate of occupancy (C-of-O) of the Abia Hotels, Umuahia, and retaken its possession from Investment Guarantee Limited, to whom the facility was leased by the administration of former Governor Theodore Ahamefule Orji. A statement issued by the Chief Press Secretary to Governor Alex Otti, Njoku Ukoha Njoku, attributed the decision to the company`s failure to fulfill the terms and conditions of the Development Lease Agreement signed with the Abia State Government in 2013.
This action is considered one of the most courageous and rightful to be taken by Governor Alex Chioma Otti in public interest. The hotel sits on a vast expanse of prime real estate right in the heart of the capital city of Umuahia. Under normal circumstance, that facility is supposed to be a goldmine for the State, given its strategic location.
The previous administrations did not see the huge economic potentials of the hotel, and therefore could not do anything to improve its fortunes. They allowed the place to remain underutilized and in very poor shape.
Because the successive administrations lacked vision, imagination and creativity, what ought to have been a treasure trove for the State was allowed to waste away. All that the administration of former Governor Theodore Orji could do was to lease the vast facility for 25 years with no significant returns to the State. It was more like an under-the-table deal mainly to patronize political allies and party supporters.
In the development lease agreement, the lessee was said to have committed to upgrade and redevelop the Hotel to a 3-star Protea Standard Hotel and manage it for 25 years. The company, it was publicly stated was in breach of the agreement as it did not add any value to the hotel in terms of upgrading or redevelopment. This, understandably, was what prompted the government to repossess the hotel.
According to the Governor`s spokesman, Ukoha, “the company has failed to upgrade and redevelop the Hotel to the agreed standards after 12 years and are in breach of other terms and conditions of the development lease agreement with the Abia State Government, prompting the State Government to revoke the agreement”.
He continued: “In line with its investment-friendly policies, the Abia State Government offered and paid compensation to Investment Guarantee Limited to cover costs incurred in the development of the hotel complex. The gesture was aimed at supporting the investor and to enable Abia State Government utilize the facility for its intended purpose”.
Although the government has not disclosed what it intends to do with the recovered facility, but public expectations are that the prime site be used for a 5-star hospitality facility as the State capital lacks such infrastructure, a situation that has denied it the opportunity to host national and international events, including high-level conferences, workshops, conventions, seminars and roundtables. With the extensive urban renewal programmes being pursued in Umuahia and Aba by the Otti administration, a 5-star hotel in that location would be a welcomed investment that would attract a lot of investors and high net-worth visitors into the State.
It would also go a long way to complement the Abia Airport being developed at Nsulu. When the Airport comes on stream, the Hotel would provide a perfect lodging environment for visitors coming to Abia for business or pleasure. The notion that Abia has no standard hotel to host significant national or international events would no longer suffice.
The project can be carried out on a public private partnership (PPP) basis for efficient resource management and maximum returns to the State. If the project is executed, it would certainly change the skyline of Umuahia and add to the aesthetic beauty of the city. Governor Otti is a man known for excellence. He cannot, therefore, settle for anything that is unbefitting for the hotel location.
We have seen what he did with the old Ogwumabiri, the former Umuahia main market that was turned into an illegal housing estate. In response to public outcry, he ordered the demolition of the buildings which constituted a blight in the city. The place has given way for a proposed integrated transport terminal currently under construction.
Otti has the will and determination to change the fortunes of Abia Hotels.
May Abia continue to prevail!
Dr. Nwosu, a Public Policy Analyst, writes from Umuahia.
Email: cdnwosu2@gmail.com